This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice ( for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Section PS 2125 - First-time adoption

Effective date:

January 1, 2011 for government organizations that are adopting the accounting standards contained in the PSA Handbook for the first time

Published by the PSAB:

August 2010


The purpose of this Section is to ensure that the first financial statements of a government component, government organization or government partnership, prepared in accordance with Public Sector Accounting Standards, contain high-quality information that: is transparent for users of the financial statements and comparable over all periods presented; provides a suitable starting point for accounting in accordance with Public Sector Accounting Standards; and can be generated at a cost that does not exceed the benefits to users. 

A government organization applies this Section to its first financial statements prepared in accordance with Public Sector Accounting Standards when transitioning from another basis of generally accepted accounting principles (GAAP). The adoption of Public Sector Accounting Standards is to be accounted for by retroactive application with restatement of prior periods unless an exemption is permitted.
A government organization may elect to use one or more of the following exemptions:

  1. retirement and post-employment benefits;
  2. business combinations;
  3. investments in government business enterprises;
  4. government business partnerships; and
  5. tangible capital asset impairment.

This Section prohibits retroactive application to accounting estimates.

History of Section PS 2125




August 2010

New Section

This new Section establishes recognition, measurement, presentation and disclosure standards relating to adoption by a government organization of the Public Sector Accounting Handbook for the first time.

May 2013

New transitional provision

The Section has been amended to include a transitional provision that clarifies that this Section does not apply to new standards issued after August 2010.

Note: The above summary does not include details of consequential amendments made as the result of other projects.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.